Tips on Step 7 - Authorize the Work (Authorization)
This particular process needs to be customized for each organization based on how you're funding process works. In some project-oriented organizations involving large projects, approval of the project automatically means approval of the necessary funding. However, in other organizations a tight rein must be maintained over the organization's cash flow and so a process is in place for separate release of funding for projects and other work as the year progresses.
In this case, it is likely that the funding requests need to be included in
your overall annual Business Plan. The plan will cover other things such as your
goals, objectives, strategy, capabilities, etc., but it is unlikely that you will
be required to attach Value Propositions and Business Cases to the plan. The funding
requests may just be in terms of the major work categories and perhaps the major
projects. Much of this information can be gathered from Step
2 - Identification.
Actual authorization means that work has been approved by the Steering Committee and the managers that submitted the original requests are all notified accordingly. In most cases, work will be authorized pretty much as it was requested. In other cases, work may be released on a reduced basis. Either way, it is essential that the Steering Committee proactively communicate the funding situation so that managers can manage their work accordingly.
In Part 6 we will provide tips on Steps 8 and 9.